1. Consumer Credit Laws

2. Fair Credit Reporting ACT o Provides rules for accessing/correcting credit reports o Requires lenders to tell you why you were denied credit.

3. Fair Credit Billing Act Provides rules for correcting billing errors Creditor must respond within 30 days 90 days to correct your account or tell you why they think the bill is correct Can withhold payment on damaged or shoddy goods or poor services if purchased with a credit card

4. Fair Debt Collections Act Prohibits debt collection agencies from using abusive practices.

5. Equal Credit Opportunity Act Credit can not be denied based on: Race Gender Religion Age Country of Origin

6. Truth-in-Lending Act Requires disclosure of the cost of credit (APR) Annual Percentage Rate (APR) o Percentage cost of credit on a yearly basis o Key to comparing costs when shopping for rates It is important to shop around for credit

7. CARD Act of 2008 45 days notice before key changes in account terms (up from previous 15 days) Minimum payment illustrations on credit card bill “Universal default” practice was banned “Teaser rates” must last at least 6 months Bills must be mailed 21 days before due date

8. CARD Act of 2008 for College Students Prohibited from offering free merchandise in exchange for credit card applications (on campus, campus events) No credit cards under age 21 unless cosigner or proof of income to make payments Limits amount of credit given to those under 21

9. Co-signing a Loan Co-signing means guaranteeing a debt for someone else o If borrower doesn’t pay, cosigner is liable for the full amount plus any late or collection fees o If payment is missed, creditor can collect from the cosigner first o Unpaid debts will appear on the cosigners credit report 5-9

10. Declaring Personal Bankruptcy Bankruptcy should be the last resort, because of the damage to your credit rating; stays in a person’s credit report 10 years. Personal bankruptcy is a legal process to distribute some or all assets among a person’s creditors due to an inability to repay debts. 5-10 U.S. Bankruptcy Act of 1978 Chapter 7 = straight bankruptcy Chapter 13 = wage earner plan

11. After Chapter 7 You May No Longer Owe: o Retail store charges o Bank credit card charges o Unsecured loans o Unpaid hospital or physician bills You Still May Owe... o Certain taxes and fines o Child support and alimony o Educational loans 5-11 http://www.youtube.com/watch?v=qXUXxM5XujE